Posting Times

Posts will be between 8:30 PM to 10:00 PM PST
Mikey's Short Term Trading Rules

1) Make up a list of stocks, commodities or ETF's to trade. This list should be names that have good earnings and high relative strength.
2) Monitor this list and throw out the weaker names
3) Buy only stocks or ETF's that are intermediate and daily up (green) and the market is Daily and intermediate term up (green)
4) Buy pullbacks on these stocks to the 20 and 50 day averages
Usually you get 4 to 6 20 day pullback buys and 2 or 3 50 day pullback buys in an intermediate term trend
5) More agressive traders can buy the 7 day average in the first 3 to 8 weeks of the uptrend.
6) Buy pullbacks not runups. A buy should not be easy or exciting but difficult and somewhat scary. DO NOT CHASE
7) Place stop at 5% below the buy price. Do not remove
8) Sell 3 to 5 days after the stock price takes out its most recent 2 week high with at least 15% gains
9) Uptrends that are 12 weeks or more may be ripe for a correction. The first 2 pullbacks to the 50 day are usually safe.
Intermediate term uptrends and downtrends generally last from 8 to 16 weeks with 12 weeks being the norm.
10) Shorting is a viable strategy in downtrends for experienced traders only. In general, reverse the above rules
11) Tweet Mikey @themarketshadow with questions or ideas

Tuesday, December 2, 2008

Market up on bargain hunting

Stocks Rebound Amid Bargain Hunting
02 Dec 2008 | 12:59 PM ET Text Size Stocks rose sharply Tuesday as investors scooped up beaten-down stocks after the prior session's sell off that saw the Dow give back 700 points.
Major U.S. Indexes.DJIA8387.47238.38+2.93%699,739,000.NCOMP1446.3748.30+3.45%404,178,800.SPX844.9328.72+3.52%2,298,272,500
The Dow Jones Industrial Average was up 50-75 points in the first hour or so of trading, then jumped another 100 points or so after Ford [F 2.80 0.25 (+9.8%) ] CEO Alan Mulally said his company has enough money to get through 2009 and may not need help from the government.
But analysts said the bounce was likely to be temporary and that stocks may test the lows reached in October again.

"No doubt we can continue to have a short-term rally, but… if we look at the global economy, contraction is on the way, corporate earnings are coming down sharply," independent strategist Bob McKee said on CNBC.
I love rallies that go up for no apparent reason. For the technicians the 10 day is holding DJIA 8310 and is rising for the second day. This is a good place to launch a new rally,If we can get back up to 8800 by the end of the week the longs will be in charge for the first time since this hit started.
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)